Chairman
I am pleased to introduce Mobily’s Annual Report for the year ended 31 December 2018. In it you will find a detailed discussion of our performance and activities through the year, together with our full audited accounts. This was a year for commencing the execution of our 3-year corporate strategy – RISE – which we introduced in 2017. We are proud of our achievements to date in delivering the the strategic goals that we have set ourselves.
Our market
Although 2018 was a volatile year for markets, stabilizing oil prices and an agreement on production cuts by OPEC members in the final quarter provided some basis for optimism for the future. An accompanying rise in consumer spending added to a sense that economic recovery could begin to consolidate and accelerate through 2019. It is clear that the reform strategies adopted by the government – Vision 2030 and the National Transformation Plan – are an important driver for this recovery and will help pave the way for the country’s future economic growth and diversity.
Growth in the telecommunications sector closely mirrors economic sentiment, but it also flows from the adoption of new technologies that are now being rolled out. With a continuing steady decrease in expatriates living in Saudi Arabia, the challenge for all participants in the sector is to rebalance their business models and tap into what increasingly sophisticated young Saudi consumers are seeking from their devices and networks. Mobily needs to be as agile as it can to provide them with the latest and most competitive solutions, to make us their operator of choice.
Highlights in 2018
Following the acquisition of additional network spectrum from Communication and Information Technology Commission (CITC) in 2017, a further 2 blocks were won in 2018 with 2x10 MHz of spectrum in the 800 MHz band available mid-year, and an additional 2x5 MHz of spectrum in the 1,800 MHz band (added to the 2x15 MHz that Mobily already holds) available from 1 March 2019. These will support both our network expansion and its capacity. The rollout of our 4G services continued and tests were initiated on the launch – over a 2-year time horizon – of 5G as well as other intermediate technologies.
The role of government in stimulating the telecom sector cannot be overstated. Its increasing use of data centers, some of them belonging to Mobily, as well as the growing digitization of the Saudi economy, for instance in hospitals, is a driver that will enable the industry in Saudi Arabia to grow and to aspire to world-class stature. Mobily’s exceptionally strong network and data center offering has put it in pole position to take full advantage of this market trend, which has a crucial place in our path to future growth.
For Members of the Board and for myself personally, 2018 was also a milestone year that saw our reappointment by Shareholders for another 3-year term. Since our previous term began, we have had the privilege to oversee a great deal of positive change, which has resulted in the turnaround that Mobily has achieved after a difficult chapter in its history as a company. We are pleased to have been reappointed in our stewardship of the business and we look forward to seeing further positive change during the current term.
Our commitment
Apart from the employment we offer, the services we deliver and the impact we have in leveraging technology for the nation, we continued to make significant contributions to charitable and philanthropic causes across the Kingdom, among them Ensan, the Charity Committee for Orphans Care, the Sanad Children’s Cancer Support Association (Riyadh) and the Takaful Charity Association for Orphan Care (Madinah). Meanwhile, Mobily’s #UpForIt campaign and platform – initially launched to our staff – went national in 2018, with a competition to identify and motivate talent among young Saudis focused on such areas as art and technology, football and cooking. These are our future employees, customers and leaders and we want to give them all the support we can.
Our thanks
I would like to express my gratitude to the Board of Directors for their diligent and valuable support for the Company throughout the year. On behalf of the Board, I would also like to offer our deep gratitude to senior management for the endeavour and professionalism that they bring to building Mobily’s today and tomorrow. Lastly, but by no means least, I would like to thank our Shareholders for their ongoing support and trust. We have made great strides in our strategic journey and we look forward to further growth and success.
